University of Iowa and Iowa State portfolios achieve strong returns amid conservative strategies

The Iowa Board of Regents meeting on June 11, 2025, highlighted significant updates regarding the financial performance and asset allocation strategies of the University of Iowa and Iowa State University portfolios. A key focus was on the conservative nature of the University of Iowa's operating portfolio, which emphasizes fixed income and liquidity, resulting in a stable performance with a 2% increase for the quarter and over 6% for the year.

Regent Barker noted that the portfolio's conservative approach is crucial due to the high volume of cash flows, ensuring liquidity while aiming for a long-term return of 3%. The Iowa State portfolio mirrored these objectives, maintaining similar performance metrics and cash flow management strategies.

The meeting also addressed the University of Iowa's endowment, which has a higher allocation to risk assets, including private markets. This long-term investment strategy aims for greater returns, with the endowment achieving an 11% return over five years. However, the valuation of private market assets occurs quarterly, leading to more muted short-term returns.

Discussions included the frequency of asset allocation reviews, with the board evaluating strategies quarterly, although significant changes are infrequent unless market conditions or investment objectives shift. The meeting concluded with a resolution regarding an abandonment issue at the University of Iowa, indicating ongoing administrative actions to manage university assets effectively.

Overall, the meeting underscored the Regents' commitment to prudent financial management and strategic investment, ensuring that both universities remain well-positioned for future growth and stability.